NORTHWEST DEVELOPMENTS LIMITED v KE LING [2019] NZHC 1023

NORTHWEST DEVELOPMENTS LIMITED v KE LING [2019] NZHC 1023

At the time the vendor gave written notice on 16 February 2018 it had submitted and obtained LINZ approval as to survey for survey plan LT509469, so the proviso in clause 24.2 was satisfied and the vendor validly extended the sunset date for six months; subsequent replacement of the plan by LT522391 did not negate that earlier submission, the validity of the extension is assessed at the time the notice is given, and therefore the purchaser was not entitled to cancel and must perform the agreement.

Citation
[2019] NZHC 1023
Parties
Vendor: Northwest Developments Limited; Purchaser: Ke Ling
Court
High Court
Jurisdiction
New Zealand
Judgment Date
10 May 2019
Procedural Posture
Contract Specific Performance / Summary Judgment (judgment for Plaintiff)
Outcome
Summary judgment for plaintiff; order for specific performance enforcing the sale agreement
Legal Topics
Specific Performance, Sunset Clause, Subdivision and Survey Plan Approval, Title Issuance, Summary Judgment
Contract Law Property/land Law Resource Management Law Civil Procedure Specific Performance Sunset Clause Subdivision and Survey Plan Approval Title Issuance +1 more

Case Brief

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Parties

Northwest Developments Limited

Vendor

Ke Ling

Purchaser

Procedural Posture

Contract Specific Performance / Summary Judgment (judgment for Plaintiff)

Legal Issues

  1. 1 Whether vendor validly extended the sunset date under clause 24.2 by submitting a survey plan to LINZ before 31 March 2018
  2. 2 Whether the submitted plan had to be the identical plan that ultimately deposited and led to titles issuing
  3. 3 Whether the validity of an extension is assessed at the time of notice or can be revoked by later events

Ratio Decidendi

At the time the vendor gave written notice on 16 February 2018 it had submitted and obtained LINZ approval as to survey for survey plan LT509469, so the proviso in clause 24.2 was satisfied and the vendor validly extended the sunset date for six months; subsequent replacement of the plan by LT522391 did not negate that earlier submission, the validity of the extension is assessed at the time the notice is given, and therefore the purchaser was not entitled to cancel and must perform the agreement.

Court Disposition

Summary judgment for plaintiff; order for specific performance enforcing the sale agreement

Orders

  • Defendant ordered to perform the agreement for sale and purchase of Lot 65 and to complete settlement
  • Settlement date fixed at 31 May 2019 to enable purchaser to arrange finance